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RBA September Minutes: Weak Q2 growth expected, will review upcoming data to judge appropriate rates

  • Appropriate to leave rates unchanged at sept 1 meeting
  • Despite improving labour demand, spare capacity and wage pressures still weak
  • Growth expected to stay below average, but members saw improvement in recent months
  • Lower a$ due to significant declines in key commod prices expected to support growth
  • Would review upcoming data to judge if rates remain appropriate
  • Very low rates to support dwelling investment and consumption growth
  • There were indications that APRA measures had slowed investment house lending
  • Will continue to work with other regulators to contain any housing market risk
  • Inflation seen remaining consistent with target over next one to two year
  • Non-mining business spending subdued in near-term, but expected to pick up over time
  • Noted global stock market volatility had not impaired functioning of other markets
  • Recent policy measures to support activity in china had not yet had their full impact
Headlines via Reuters
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